Electrician Insurance Ontario

Who Needs Electrician Insurance in Ontario?

As a business owner, you know how important it is to take the correct measures to protect your company. For electrical contractors, having the right insurance is a key step to ensure you’re protected in the event of an emergency.

Electricians whose work involves wiring and electricity need electrical contractors’ insurance to protect themselves, their businesses and their clients. Electrician insurance can provide protection while a job is underway, and after it is done.

This coverage provides protection for professionals completing electrical work in new or older homes, expanding service in an existing property, or completing electrical work for commercial, industrial, or agricultural operations. Any of the following careers should consider having electrician insurance:

• Electricians
• Electrical technicians
• Electrical contractors
• Industrial electricians
• Electrical repairmen
• Lighting technicians
• Heating contractors
• HVAC technicians

That said, it’s important to note that your policy may differ slightly depending on the kind of work you do. For instance, electrical installers (who complete projects such as installing, maintaining and repairing electrical wiring) may have different needs when compared to general electrical services (who may be more involved with inspections and replacing worn parts).

Likewise, a sole trader will have different coverage needs when compared to an electrical contractor who employs staff. For example, a sole proprietor needs at least $2 million in coverage, whereas larger companies may need up to $5 million. To ensure you have the best coverage for your unique needs, it’s important to speak with a dedicated broker from Morison Insurance. One of our team members will make sure you’re properly protected in the event of an emergency.

What Does Electrical Contractor Insurance Cover?

Electrical insurance protects your company from a range of perils due to an incident occurring on the job site, or at the property after work has been completed. Imagine for a moment what would happen if you didn’t have proper insurance and disaster struck? For instance, what if an electrical fire breaks out at a customer’s property? Or, what would you do if your tools were stolen?

Without insurance, you’d be forced to pay out-of-pocket for any resulting damages and/or lawsuits. This could wind up being financially crippling for you and your company.

Protect yourself, your employees and clients with electrical insurance. This policy is fairly comprehensive and protects against a range of risks. Furthermore, there are additional coverages available depending on your electrical company’s unique needs.

Commercial General Liability Insurance for Electricians

Also referred to as CGL, commercial general liability insurance is a basic form of coverage that protects you from daily risks that may occur during regular business operations. This includes bodily injury to a third party, such as someone visiting the worksite or property. Often, third-party bodily injury occurs because of a fall from walking on a slippery surface or tripping over tools. This coverage also protects against property damage that may occur while at work. CGL typically covers medical bills and legal expenses—regardless of a lawsuit’s outcome.

Professional Liability Insurance for Electricians

Also known as errors and omissions insurance (E&O), professional liability offers protection for negligence, failure to deliver a service as advertised or promised, and misconduct. For example, say you gave your client professional advice resulting in an electrical fire or property damage. They would have grounds to sue you. Likewise, if the services you rendered were not what the client was expecting, they could sue. This could include missing signs of wear on electrical wires that result in electrocution or property damage. Professional liability insurance protects you from legal fees and subsequent damages, including financial settlements.

Tools and Equipment Coverage for Electricians

As implied by the name, tools and equipment insurance protects your equipment and tools. Usually, these items are protected from damage by an insured peril and loss. This policy specifically covers loss or damage to the equipment you use while completing your job, whether the equipment is in your care or you own it. This policy does not provide coverage for wear and tear. For example, if a tool is damaged while in use, it may not be covered. Separate extensions are available for rented equipment that is in your care. Usually, this type of insurance covers tools that are stolen overnight from your home, whether by an employee or an unknown individual. Please note that it is still best that you protect your tools from theft even if you are fully insured. 

It’s important to note that tools and equipment may be covered when they are stored at a contractor’s home, but not when they are taken off the property. To protect these items while in transit or on a job site, you need to have additional coverage. There are more details about this outlined below. 

Important Notes:

• If you have employees, you need workers’ compensation insurance. Usually, this coverage can be supplied by the government. Workers’ compensation insurance helps protect your employees in case they are injured at work.
• If you operate an electrician business from home and use an out building such as a garage or shed to store your equipment, home insurance will not protect you in the event of a theft or loss. Home insurance only protects residences, not buildings that are also used for commercial purposes.

Other Coverages Available for Electricians

Depending on your needs, and your comfort with risk, you might be inclined to protect your electrician business further by including a few add-on policies. There are many types of insurance that an electrical contractor can add to their policy to be fully protected:

• Commercial Auto Insurance: If you transport equipment and materials, say from home to a job site, then you need commercial auto insurance. It protects your commercial vehicle against liability damages, collision damages, medical expenses and theft.
• Cyber Insurance: This coverage protects your electrical business’ website, helps you avoid business disruption due to a cyberattack, and helps protect confidential client information.
• Pollution Liability Insurance: This insurance provides coverage for third-party bodily injury, property damage, and environmental damage due to both sudden and gradual pollution events that happen on a job site.
• Installation Floater Protection: This insurance covers theft of items that will be installed at a customer’s premises while the items are in transit and/or at a job site before installation.
• Commercial Property Insurance: This broad form of coverage protects against perils such as fire, theft and vandalism on your own property, such as your business location.
• Tools and Equipment Floater Protection: This insurance provides coverage for your tools and equipment when the items are taken off your premises—such as being transported to various workplaces. It’s important to note that higher-valued items, such as specialty tools, may need to be itemized on your policy.
• Disability Insurance: This insurance protects your earned income against the risk a disability prevents you from completing core work functions.
• Life Insurance: Protection for your family, or loved ones, in the event of death.

Why Do I Need Coverage?

If you work as an electrical contractor, sub-contractor or technician, you need electrician insurance to protect yourself against a range of risks that could result in personal injury, theft/loss, or a lawsuit due to property damage or third-party bodily injury. When something goes wrong during an electrical job, it can go really wrong. You may find yourself responsible for the financial losses of an entire commercial property, or face having to pay for medical costs because your client was injured at your job site. Having to pay for damages, legal fees and medical fees out-of-pocket can be financially crippling. Don’t take that risk, and ensure you’re properly insured.

How are My Electrician Tools Covered?

Electrician insurance covers your tools from loss or theft, while on your premises. To ensure your tools are properly protected on the job site and in transit, it’s important to add-on tools and equipment floater protection, which covers your tools from theft and loss while they are away from your residence.

What Impacts Electrician Insurance Rates?

There are a number of factors that can impact electrician insurance rates, including:

• The size of your business.
• How much revenue you will make in the upcoming year.
• Your past claims history.
• The years of experience you possess. For example, if you have less than three years of experience, it could be harder to find coverage or your insurance policy may cost more.
• Whether you were insured in the past. For instance, if you haven’t had insurance in the past and were operating, some insurance companies won’t insure you. Alternatively, the coverage costs could be much more.

What Does Electrician Insurance Cover?

A basic electrical contractor insurance policy covers:

• Commercial general liability, which protects against third-party bodily injury and property damage.
• Professional liability insurance, which protects against damages or a lawsuit due to negligence, bad advice and failure to deliver promised services.
• Equipment and tools insurance, which protects against theft of your equipment and tools from your premises.

There are many additional coverages available to further protect your electrical contractor company.

What Do I Need to Purchase Electrician Insurance?

When applying for an insurance policy, your broker will ask you a series of questions to help us get to know your business’ unique needs better. These questions will help us understand what coverage is best for you, and how we can be of the best assistance. A few questions you can expect your Morison Insurance agent to ask include:

• Do you subcontract work? If so, what percent of your overall operations are subcontracted out?
• Do you have contracts in place with your sub-contractors?
• Do you request proof of insurance from your sub-contractors?
• Do you do any work in industrial, manufacturing or airport sites?
• When did you obtain your trade license, certification and accreditation?
• Is this your full-time or part-time job?
• Do you have insurance now?
• Have you been cancelled/declined/non-renewed in the past five years?
• Have you had any claims in the past five years?
• What are your gross annual revenues?
• Do you offer any alarm installation services?
• Do you offer any millwright services?

What is the Difference Between Business Insurance Coverage and General Liability Insurance?

“Business insurance” is a general term used to describe many different types of insurance a business may need, such as commercial auto insurance, professional liability insurance and more. One of these types of coverage is a general liability insurance policy. This coverage is a specific type of coverage that electrical business owners need to protect themselves against legal fees and medical costs due to third-party bodily injury and/or property damage.

Why Choose Morison Insurance to Get Electrician Insurance?

As a family-owned and operated business, our team is truly invested in finding our clients the best possible coverage for their needs. We’ve helped countless business owners across Ontario find the protection they need to have peace of mind while operating their companies. Our approach involves listening to your needs, answering your questions and comparing quotes from the industry’s leading insurance companies to ensure you receive the best coverage possible.

To inquire about our electrician insurance today, we invite you to give our friendly team a call at 1-800-463-8074. You can also inquire about a quote online.